Meeting the challenge of poverty in urban areas

This paper sets out the central role that well-governed and managed cities and towns can play in reducing poverty. The key message is that achievement of the International Development Targets will depend in part on the development of strategies which recognise the important role played by cities and towns in strengthening poor people’s capacity to improve their socio-economic and political conditions. It underlies the need to address the particular characteristics of urban poverty which can constrain these opportunities.

This discussion is particularly relevant because of the rapid growth in the numbers and proportion of the population of developing countries living in cities and towns.While their rural populations are projected to remain around the 3 billion mark, their urban populations are forecast to grow from 2 billion now to about 4 billion by 2025, or from about 40% to about 57% of their total population.

Increasing urbanisation provides potential for a significant contribution to the achievement of the International Development targets because cities are centres of politics, culture, complex service provision systems, enterprise development and innovation.They create spaces where poor people can participate in a range of socio-economic and political activities, which can radically improve their well-being and status.They can also provide a range of services (environmental, health, education, infrastructure, safety nets etc.) on an efficient and cost effective basis, which can provide benefits for poor people – good health, educational and job opportunities, libraries, savings and loans facilities, and access to environmental services.

Dynamic,well managed cities generate benefits far outside their boundaries.A buoyant regional economy, which fosters productive exchanges of goods, services, people and capital between rural and urban areas, makes a significant contribution to national economic growth. Indeed, all the nations in the South with the greatest economic successes over the last 30 years have urbanised rapidly; most of those with the least economic success have not.There is a direct correlation between economic growth and poverty reduction.